Blockchain governance for transparent public procurement in Costa Rica

Abstract

This research evaluates the potential of blockchain technology to mitigate corruption in Costa Rica's public procurement system, employing a mixed-methods approach that encompasses an analysis of 14,327 procedures (2018-2023), cryptographic audits, and stakeholder ethnography (n = 37). Results show that blockchain can cut processing times by 37.5% (95% Confidence Interval (CI) [32.1, 42.9]) and boost Small and Medium-sized Businesses (SME) participation by 40%. However, there are still institutional barriers: 27.1% of contracts don't follow transparency rules, and the blockchain adaptability index (α = 0.88) only scores 4.2/10, which is below the level required for sustainable adoption. The research proposes an institutional cryptography framework, demonstrating the adaptability of corruption to digital systems, with cryptographic audits indicating that 12% of data exhibit manipulation. A hybrid anti-corruption model is suggested, which includes changes to the law (amendments to Law 7494), expanding capacity, and phased blockchain implementation (Hyperledger Fabric at 80 TPS). This model is 42% more effective at reducing corruption than alternatives that work on their own. Innovative methods include live blockchain simulations with 4,821 transactions, game-theoretic stakeholder analysis, and seminars for SMEs that allow everyone to participate.